Exchanges Get Closer Inspection

By

Scott Patterson And

Jean Eaglesham

Nov. 19, 2012 11:03 p.m. ET

Federal securities regulators are stepping up oversight of stock exchanges as they scramble to catch up to trading advantages that some say have developed for sophisticated clients at the expense of ordinary investors.

That effort has led the Securities and Exchange Commission to expand an enforcement probe into a broader look at how exchanges develop new products, communicate with investors and provide incentives to trade, according...